Brazil’s Banco Master has outlined alternative proposals to the Central Bank after its partnership with Banco de Brasília (BRB) was rejected, people familiar with the matter told Valor.
No fresh application has yet been filed, and both banks signalled in recent days they are unlikely to submit a formal appeal.
Daniel Vorcaro, Master’s main shareholder, met Central Bank President Gabriel Galípolo, while BRB’s chief executive Paulo Henrique Costa held talks with supervisors Ailton de Aquino Santos and Renato Gomes.
One source said: “The meeting was productive; Master has several plans, but still needs to mature its proposals. The bank has stayed afloat during a difficult period and can afford to wait longer.”
Analysts warn Master may need new support from the Credit Guarantee Fund (FGC) to endure a full review process, though the fund is reluctant to extend another facility beyond the BRL4bn ($740mn) already granted.
“Looking at Master’s recent cash flow, we need to understand the FGC’s role and how much of the initial line remains,” an executive said.
Vorcaro has been seeking BRL1bn from asset sales, including insurer Kovr and court-ordered receivables. Sources said PicPay/Original is a potential buyer, while BTG Pactual could also acquire assets.
Master and BRB declined to comment.
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